How can I tell if a garage door company relies on paid online ads?
Ask for the ad account statements and match them to the calls and jobs they produced. If bookings fall sharply in months when ad spending was low, the company is renting its demand. Steady calls from repeat customers and referrals suggest a sturdier base.
Ask for several months of statements from each ad platform alongside the call log and the booked-job list. Look at how much was spent each month and whether job counts rose and fell with it. A close match means the business depends on those ads, and a buyer will have to keep paying to keep the phones busy.
Then test the other sources. Search for the company by name and by service in your area, see where it appears and whether the listings are paid or free, and read the reviews. Ask what share of customers say they were referred or had used the company before. A garage door company with a long list of repeat contacts and property managers has more of a base.
Finally, check how the ads are managed. Who owns the accounts, is the agency on a contract, and would the accounts and phone numbers transfer on a sale? A phone number tied to the former owner’s personal account can disappear. Your accountant can show you how ad costs appear in the financial statements.
Key takeaways
- Match monthly ad spending to monthly calls and booked jobs.
- Ask how customers say they found the company.
- Confirm who owns the ad accounts, tracking numbers and website.
- See how marketing costs appear in the financial statements.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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